Myer restructure culls jobs

12 Jul 2012

Department store Myer has confirmed it
will significantly slash its staff count, as the fallout from the
tough trading environment continues.

The retailer, which currently employs
around 13,000 staff, said the cuts will affect mainly its store
support functions, including services such as marketing and events,
IT, HR, and merchandise and supply chain.

In a statement to market today, the
company said the retail sector is experiencing the toughest
conditions seen in over 25 years, and will be rebasing its cost
structure to align to the current operating conditions.

In particular, Myer cited higher
occupancy costs, higher wage costs, and the inflation of other
outgoings, including utility charges, as key factors in its decision.

Despite the impending redundancies,
Myer also said it was “important to note” that its investment in
customer service, the development of its brands and its omni-channel
strategy are “quarantined from the impact of the review”.

Myer CEO Bernie Brookes added that a
number of employees will also be redeployed to the areas of the
business where additional resources are required.

“While these decisions are never
easy, they are prudent and necessary to ensure our business is
attuned to our operating environment. We regret the impact on those
team members affected and have provided assistance to them in terms
of severance payments and support for job transition,” he said.

“We have determined a support
structure that will take the business forward and underpin our
investment in our core offer, including continuing the investment to
improve customer service, enhancing our merchandise offer, our
loyalty program, delivering our omni-channel offer and optimising our
store network.”